10-QPeriod: Q1 FY2023

EVERSOURCE ENERGY Quarterly Report for Q1 Ended Mar 31, 2023

Filed May 5, 2023For Securities:ES

Summary

This 10-Q filing from Eversource Energy (ES) for the period ending March 31, 2023, indicates stability in its risk management practices and internal controls. The company's regulated entities effectively pass on commodity price risks to customers, thereby avoiding direct exposure to earnings fluctuations from these contracts. Interest rate and credit risks are managed through established policies, including maintaining a mix of fixed and variable rate debt and monitoring counterparty performance, with collateral in place for certain agreements. Furthermore, management has concluded that disclosure controls and procedures, as well as internal controls over financial reporting, remain effective for Eversource and its subsidiaries (CL&P, NSTAR Electric, and PSNH). There have been no material changes identified in these controls or in previously disclosed legal proceedings and risk factors since the last annual report. Share repurchases primarily relate to matching contributions for the 401k Plan.

Financial Highlights

46 data points
Beta

Revenue

$3.75B

Net Income

$491.16M

13.1% Net Margin

EPS (Diluted)

$1.41

Total Assets

$54.11B

Cash & Equivalents

$35.98M

Free Cash Flow

-$907.99M

Financial Statements
Beta
Revenue$3.75B
Operating Expenses$3.05B
Operating Income$749.57M
Interest Expense$194.54M
Net Income$491.16M
EPS (Basic)$1.41
EPS (Diluted)$1.41
Shares Outstanding (Basic)349.22M
Shares Outstanding (Diluted)349.61M

Key Highlights

  • 1Regulated companies insulate earnings from commodity price volatility by passing costs to customers.
  • 2Interest rate risk is managed by maintaining a balance of fixed and variable rate long-term debt.
  • 3Credit risk is managed through diverse customer/supplier relationships and monitoring counterparties, with $17.0 million in collateral held from counterparties as of March 31, 2023.
  • 4Management has affirmed the effectiveness of disclosure controls and procedures for Eversource and its subsidiaries.
  • 5No material changes have been identified in internal controls over financial reporting during the quarter.
  • 6No new material legal proceedings or risk factors have been disclosed since the prior annual report.
  • 7Share repurchases were minimal, primarily related to 401k plan matching contributions.

Frequently Asked Questions

Eversource's regulated companies manage commodity price risk by entering into energy contracts to serve customers. The economic impacts of these contracts are passed on to the customers, meaning the regulated companies do not face direct exposure to losses in future earnings or fair values from these market-sensitive instruments.

Interest rate risk is managed by maintaining a mix of fixed and variable rate long-term debt, in line with written policies. Credit risk, the risk of loss due to counterparty non-performance, is managed through a diverse mix of customers and suppliers, established credit practices, and monitoring of contracting risks. As of March 31, 2023, Eversource's regulated companies held $17.0 million in collateral from counterparties.

No. Management has evaluated and concluded that the disclosure controls and procedures, as well as internal controls over financial reporting for Eversource and its subsidiaries, remain effective. There have been no material changes identified in these controls, nor have any new material legal proceedings or risk factors been identified since the company's 2022 Form 10-K filing.

Share repurchases during the first quarter of 2023 were minimal, totaling 2,525 shares. These purchases were made as part of the Company's efforts to match contributions under the Eversource 401k Plan.